Management Fee Treated as Interest: Exemption under India-Germany DTAA

Aka Ausfuhrrkreditgesellschaft MBH Vs ACIT (ITAT Delhi)

Introduction: In a landmark ruling by the Income Tax Appellate Tribunal (ITAT) in Delhi, the case of Aka Ausfuhrrkreditgesellschaft MBH Vs Assistant Commissioner of Income Tax has redefined the tax implications of management fees associated with External Commercial Borrowings (ECB) within the framework of the India-Germany Double Taxation Avoidance Agreement (DTAA). The ITAT’s decision, pertinent to the Assessment Year 2016-17, brings to light the

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